Steve wanted to open a day care service facility for dogs. He estimated the costs involved in providing the services desired by dog owners
After extensive deliberation, Steve decided not to proceed with the plan as the cost of providing the services was too high compared to the rates dog owners would be willing to pay. Which of the following stages of the new-product development process has Steve used to arrive at this decision?
a. Idea screening
b. Business analysis
c. Idea generation
d. Test marketing
ANSWER: b
Steve has used the business analysis stage of the new-product development process to decide if he should open a day care service facility for dogs. In the business analysis stage, preliminary figures for demand, cost, sales, and profitability are calculated. For the first time, costs and revenues are estimated and compared.
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